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British factory workers have been paid as little as £3 an hour to make clothes for a high street chains including New Look and River Island, a new investigation has claimed.

Textile companies have been paying workers less than half the minimum wage and blamed competition from cheaper factories in Bangladesh and China for not paying their staff more, according to undercover footage by Channel 4's Dispatches.

The programme, which will air on Monday night, purports to show that a worker at Fashion Square Ltd - a Leicester-based company - was paid £3 per hour to pack and press dresses for River Island.

When an undercover reporter challenged bosses about why staff were not being paid the National...